The Tokyo Stock Exchange (TSE) is slashing the trading fee for individual securities options trading by three quarters from ¥40 to ¥10 per contract in an attempt to invigorate trading in the individual securities options market.
The reduced trading fee takes effect from today.
The bourse is also considering revising its market maker scheme to increase the appeal of the individual securities options market, however, it has not yet released details of any such revisions.
Entry of online brokers and other new participants to the individual securities options market has led to steady growth in volumes, according to the TSE.
Auction market liquidity increased sharply, reaching 29,249 contracts in May, a record high since the launch of the Tdex+ system, TSE’s derivatives trading platform, in October 2009.
In July, the Japan Fair Trade Commission gave the all-clear for the merging of the TSE with the Osaka Securities Exchange (OSE), set to create the world’s third-biggest equities exchange.
The merger between the TSE and OSE was announced 22 November and is currently slated for January 2013.